Cronyism

Cronyism, Detroit, Government Incompetence, Michigan, Michigan Politics, Taxes

Detroit Schools Bailout Opposed

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MRG Poll Shows Michigan Voters Strongly Oppose Using Taxpayer Money for DPS’ $715 Million Bailout.

bailoutsSome information from the Michigan Association of Public School Academies

MAPSA notes that the the poll is very timely, because the bailout is up for a vote today.

As expected, Michigan voters strongly oppose using taxpayer money to pay off the Detroit Public Schools’ $715 million in debt, according to a new poll by the Marketing Resource Group (MRG). The poll of 600 likely Michigan voters, commissioned by the Michigan Association of Public School Academies, was conducted Feb. 22-27.

Statewide, only 33 percent of voters favor using taxpayer money to pay off DPS’ debt, while 56 percent oppose it (with most of those saying they “strongly” oppose it). Even among Detroit voters, sentiments are almost evenly split, with 40 percent favoring the bailout and 38 percent opposing it. In the entire Metro Detroit region, the bailout also isn’t popular, with only 37 percent favoring it and 52 percent opposing it.

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Conservative News, Cronyism, Democrats, Detroit, Elections, Government Incompetence, Michigan, Michigan Politics, Opinion, Republicans

The Free Press Wants to Help Republicans

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Really????

John Kasich Image 1The Detroit Free Press Editorial Board endorsed Ohio Governor John R. Kasich in the March 8th Republican Presidential Primary yesterday. Governor Kasich is a fine man with many worthwhile qualifications, but every poll and vote this year indicate that he is way out of step with the current political zeitgeist. Common Core, Medicaid expansion, and global warming are not Republican crowd pleasers. Even the Democratic Presidential candidates are soft peddling these losers.

Is there a single genuine Republican in Michigan stupid enough to believe that the Detroit Free Press Editorial Board would actually do anything of benefit to the Republican Party, nationally or in Michigan?

Remember that the Detroit Free Press Editorial Board endorsed our current “I know noooooothing” RINO Governor not just once, but twice. Governor Snyder and his merry band of brown-nosing bureaucrats have really boosted the fortunes of the Michigan Republican Party, haven’t they? Even the DeVos family – big Kasich contributors in Ohio Governor races – are not peddling him in Michigan.

So why would the Detroit Free Press Editorial Board endorse Governor John Kasich in the Republican Presidential Primary? Two possibilities: the arrogance of the witless, or another ploy to destroy the Michigan Republican Party.

You decide.

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Cronyism, Democrats, Detroit, Government Incompetence, Michigan, Michigan Politics, Republicans

Yet Another Government Triumph in Michigan

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Rewarding Incompetence and Corruption With Your Tax Dollars

Snyder Duggan Orr Image aMayor Mike Duggan startled Michigan yesterday by disclosing that Detroit found the actuarial accrued liability (AAL) in their pension plans to be $ 491 million higher than that calculated in their U.S. Bankruptcy Court Plan of Adjustment. The very expensive Detroit bankruptcy consultants used an outdated version of the IRS Static Mortality Table when calculating Detroit’s future pension payments. Detroit’s unfunded actuarial accrued liability (UAAL) was not the $ 731 million stated in the Plan of Adjustment, rather it was $ 1.222 billion. Big money in a city whose total governmental revenues were $ 1.415 billion in FY 2014. Mayor Duggan blames erstwhile Emergency Manager Kevyn Orr for this little oversight, but others were also responsible.

GLWA Detroit Seal ImageNo word yet from the Great Lakes Water Authority whether all those Detroit Water & Sewerage Department employees they absorbed from the City of Detroit have the same AAL calculation error in their pension funding schedules. You can bet they did, and the suburban geniuses politicians who spent a year doing due diligence also missed it. The DW&SD pension funding schedules were determined by the same very expensive bunglers who wrote the Detroit Plan of Adjustment.

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Cronyism, Democrats, Detroit, Fees, Flint Water Fiasco, Government Incompetence, Michigan, Republicans, Taxes

The Dismal Science Confutes Emergency Management in Flint

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The entire world now knows what crass bureaucratic stupidity, feeble political direction, and witless press coverage did to Flint. We have demonstrated that Flint’s politicians and financial managers made terrible decisions in an effort to replace plunging tax revenue, which had reached statutory and constitutional rate limitations.

Flint Water Bill 1The foremost source of revenue expanded was Flint’s water & sewerage charges. Annual free cash flow from water & sewerage charges was increased from nil to $ 28.7 million (bottoms of page 3-13) over the decade from 2004 [FY2005 CAFR, large file] to 2014 [FY2015 CAFR, large file]. The big jump in free cash flow from water & sewerage charges occurred in 2014 as a consequence of Flint River sourcing. Flint only had to pay the DW&SD pirates for water up to April 25th in 2014. Annual free cash flow from water & sewerage charges in 2013 [FY 2014 CAFR, large file] was only $ 9.4 million when they paid DW&SD all year. Why Flint resourced to the Flint River in one number: $ 19.3 million more in cash flow. And most of this $ 19.3 million is now gone with the return to DW&SD water. We will know how much gone later this year.

That $ 28.7 million in free cash flow during 2014 was a 77% markup on actual Flint water & sewerage costs. Only $ 7 million of it was used for infrastructure, mostly to prepare for the now abandoned Flint River sourcing. Only $ 2 million of it was used to pay off water & sewerage debt. The remaining $ 18.5 million was used by other Flint city departments and applied to other Flint obligations. That $ 18.5 million dollars became 22% of all Flint City revenues. Greater than any other source of revenue, greater than income tax revenue, greater than property tax revenue, greater than State revenue sharing, greater than Federal revenue sharing. That $ 28.7 million dollars was the only reason Flint was able to exit emergency management. That and a $ 65.3 million theft from restatement of Flint’s water and sewerage enterprise fund net positions, from their 2014 CAFR to their 2015 CAFR (compare ending 2014 to beginning 2015 net positions on the bottom of pages 3-13).

Let’s consider a counterfactual. Suppose that Michigan’s bureaucrats and political leaders were actually competent and, under the unrelenting scrutiny of a watchful press, arranged for proper chemistry controls of Flint River sourced water. No Flint residents were exposed to lead, no one died from legionella pneumophila, and Flint residents sang the praises of their new water. Its tough to ignore recent history, but do so for a moment so we can explore a very important question:

Would the financial reorganization of Flint under its popularly elected politicians and emergency managers have worked?

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Cronyism, Democrats, Flint Water Fiasco, Government Incompetence, Michigan, Michigan Politics, Republicans

First Do No Harm…..

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First Do No Harm ImageThe most disturbing aspect of the Flint water quality fiasco was the Legionnaires’ Disease outbreak in Genesee County and its concealment from the public. Eighty-seven people fell ill and ten died, nine if you want to be fussy about one victim lingering more than a month after diagnosis. By MDHHS’ definition, it isn’t Legionnaires’ Disease if you linger longer than 30 days after your hospital stay. So one of the ten Legionnaires’ Disease deaths got scrubbed from the statistics.

Harvey Hollins III

Harvey Hollins III

AP is reporting that Governor Snyder’s immediate subordinates were discussing whether the Legionnaires’ Disease outbreak was related to Flint water quality by March 13, 2015   Harvey Hollins III, Governor Snyder’s Office of Urban and Metropolitan Initiatives Director, received an eMail from former MDEQ Communications Director Brad Wurfel referring to the Genesee County Legionnaires’ Disease cluster.

Far earlier, in 2014, Jim Henry in the Genesee County Health Department was emailing Flint city leaders, the Flint emergency financial managers, MDEQ, and MDHHS. MDHHS Chief Medical Executive Dr. Eden V. Wells said the June 2015 [Bohm] report on the first outbreak was shared with officials from the U.S. Centers for Disease Control and Prevention as well. No one in this vast chain of communications felt compelled to inform the public.

Dr. Eden Wells

Dr. Eden Wells

Dr. Eden Wells replaced Dr. Matthew Davis as MDHHS’ Chief Medical Executive at the end of March, 2015. One has to wonder why Dr. Davis suddenly returned to U of M after only two years as the MDHHS Chief Medical Executive, in the midst of the first Genesee County Legionnaires’ Disease outbreak. Did he jump, or was he pushed?  Perhaps MDHHS Director Nick Lyon found the career MDHHS bureaucrat Dr. Wells more accommodating than Dr. Davis? It was four months after Governor Snyder consolidated MDCH into the new MDHHS.  However, nothing in the U of M faculty manual suggests that Dr. Davis would have had to return to U of M to maintain his status there.

Dr. Matthew Davis

Dr. Matthew Davis

The public was not informed until Governor Snyder’s startling statement on January 13, 2016. Snyder said he himself was not informed of the Legionnaires’ Disease cluster in Genesee County until “days before” his public announcement. Michigan’s lefties have pounced on this 10 month delay, insinuating that Governor Snyder knew well before his announcement. This may or may not be true, and people will draw conclusions according to their political predilections.  Facts no longer matter on this question, even if you could penetrate the wall of obfuscation.

Director Hollins now says there was not enough information to take the issue to the Governor. Essentially, he is saying that no one could prove the source of the Genesee County Legionnaires’ Disease cluster, so there was no reason to disclose it to his superior. The other bureaucrats in this chain of communications also stayed mum, apparently following the same line of reasoning as Director Hollins.

There is a much bigger story here. One without any ‘he said, she said’ doubt.

It is now indisputable that a lot of CDC, MDEQ, MDHHS, and Genesee County Health Department bureaucrats knew of the first Genesee County Legionnaires’ Disease cluster by March 2015 and concealed it from the Michigan public for over 10 months.  Throughout the entire second Genesee County Legionnaires’ Disease cluster .

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Cronyism, Fees, Michigan, Michigan Politics, Opinion, Part Time Legislature, Philosophy, Proposal 15-1, Taxes

Time to Light These Clowns Up

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Someone needs to impress upon the MRP legislative and executive leadership that “NO” means “NO” . . . period.

Roughly nine months ago, We the People of Michigan, by a record-breaking 4-to-1 statewide margin, told our elected nobility in Lansing “HELL NO” on a proposed tax increase, which they’d tried to sell as a road proposal, but which the voting public saw clearly as a political sausage job that produced a cronyist’s grab bag of goodies. Thus, every single county in this state, without exception and in no uncertain terms, clearly delivered a mandate-level message that we are no longer interested in extending the legislature a taxpayer-funded line of credit, until such time as they get their spending priorities in order. You would think that a statewide vox populi shellacking, with a turnout rate typical of the biennial congressional primaries, would clue in the GoverNerd, and the rest of the MRP/MIGOPe professional political establishment, that We the People are done being their ATM.

You would think that . . . but you would be wrong. Six months after that ballot box rejection, while most of us were tucking our children into bed (or monitoring local election results), the lords and barons in the Michigan Legislature essentially told we the proletariat that our opinion is irrelevant, and that “no” really means “don’t ask again” – which, of course, they didn’t – by passing a “road funding” tax package that was nearly identical to the core of Proposal 15-1, less the elements required to force it onto the ballot. In doing this, they flatly rejected the clear will of the people, imposed through legislative fiat that which they couldn’t persuade the electorate to publicly ratify, and took yet another step toward government by aristocracy.

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Conservative News, Cronyism, Democrats, Detroit, Fees, Flint Water Fiasco, Government Incompetence, Liberty, Michigan, Michigan Politics, Rent Seeking, Republicans, Taxes

Emergency Managers, Emergency Management

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Synonyms for Headlee Evasion

Darnell Early

Darnell Early

La victoria trova cento padri, a nessuno vuole riconoscere l’insuccesso
A victory finds 100 fathers, nobody claims credit for a failure.
Galezzo Ciano, 2o Conte di Cortellazzo e Buccari, Diary (1942)

The left wing meme on the Flint Water fiasco is that Governor Snyder seized absolute control of Flint and installed doctrinaire Republican viceroys who ruthlessly slashed Flint’s payroll and expenditures without any regard for the residents.

If only this were so.

Michael Brown

Michael Brown

The Flint emergency managers had only one common thread in their backgrounds, long records of administration in government and the nonprofit sectors. No productive experience. Experts at spending other people’s money. Well paid experts.  Outright Democrats or chameleons politically; typical politics of the bureaucratic class. Look at the backgrounds of the Flint emergency managers:

Edward Kurtz

Michael K. Brown

Edward Kurtz, again

Michael K. Brown, again

Darnell Early

Gerald (Jerry) Ambrose

Emergency managers are not viceroys with absolute powers. The evolution of emergency management in Michigan was frustrated by public union opposition. Five successive laws, one repealed by referendum. The law in force during the critical Flint water fiasco decisions is PA 436 of 2012. The powers it confers upon emergency managers are:

MCL 141.1549, Section 9

(2) Upon appointment, an emergency manager shall act for and in the place and stead of the governing body and the office of chief administrative officer of the local government. The emergency manager shall have broad powers in receivership to rectify the financial emergency and to assure the fiscal accountability of the local government and the local government’s capacity to provide or cause to be provided necessary governmental services essential to the public health, safety, and welfare. Following appointment of an emergency manager and during the pendency of receivership, the governing body and the chief administrative officer of the local government shall not exercise any of the powers of those offices except as may be specifically authorized in writing by the emergency manager or as otherwise provided by this act and are subject to any conditions required by the emergency manager.

The emergency managers replace the mayors, council, and chief administrative officers of the municipal governments. While this does indeed give them extraordinary powers of control, their control is anything but absolute. The municipal charter continues in effect and continues to protect the prerogatives of lesser bureaucrats. The vague statutory powers of emergency managers beyond replacing the mayor, council, and chief administrative officer poses unremitting legal jeopardy to emergency managers. Encourages timidity and bureaucratic subterfuge. Not absolute control.

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Cronyism, Fees, Michigan, Taxes

Speaking Of Headlee

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Asked often enough about government: "Is this even legal? "

pig-collieOne might question the way in which money can be transferred to ‘cover’ other expenses.

We know that pensions are untouchable, but in times of financial distress, some governmental entities are finding out that health care is NOT off the table.  However, others are developing more abusive ways to maintain the ‘status-quo.’  From Bloomfield TWP:

Bloomfield Township taxpayers have been receiving higher and higher bills for water and sewer each year.  Yet in a controversial 5-2 vote in late 2015, Bloomfield Township Board of Trustees transferred  $2.76 million of the fees collected from the citizens water/sewer bills and deposited those millions into a Retired Employees Health Care Trust.

Can you say “turning a fee into a tax?”

Is there any wonder why some might say that creativity in government can be a bad thing?

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Cronyism, Democrats, Detroit, Flint Water Fiasco, Government Incompetence, Michigan, Michigan Politics, Republicans

No Chemists!

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Governor Snyder Continues to Demonstrate The Finesse Which Made Gateway Great

Snyder Flint Press Conference 27 January 2016Governor Snyder announced the remaining members of the Flint Water Interagency Coordinating Committee today. No chemists. Not one person with a chemistry degree. Undoubtedly, a fine collection of worthy government officials. Four ‘field experts’, none of whom are chemists. Medical doctors are not chemists. Public health administrators are not chemists. Civil engineers are not chemists. Materials scientists are not chemists. Chemists are chemists. Chemists know things:

Thermodynamics
Kinetics
pH
Equilibrium
Redox

The lead in Flint drinking water is, at its core, an issue of water chemistry. Water chemistry was allowed to go completely berserk at the Flint Water Treatment Plant for 18 months. Flint’s distribution system has been severely damaged. Fixing that damaged distribution piping is a venture into uncharted territory. Only an inorganic chemist with a command of thermodynamics, kinetics, pH, ICP-OES analysis, and the equilibrium of redox reactions will successfully navigate this uncharted territory. Not another lying MDEQ clown, either. They had their shot and blew it. Why the Flint Water Interagency Coordinating Committee is necessary in the first place.

Dmitri Ivanovich Mendeleev Дми́трий Ива́нович Менделе́ев 1834 – 1907

Dmitri Ivanovich Mendeleev
Дми́трий Ива́нович Менделе́ев
1834 – 1907

No one will trust Flint water until its chemistry is brought under control and that will require adult supervision – a genuine chemist. Detroit Water & Sewerage water is not a magic bullet. Detroit’s water works in Detroit’s distribution system. Detroit’s distribution system has not been damaged by 18 months of reckless water chemistry.

Flint’s water chemistry needs to be fixed, yesterday. New lawsuits against the State of Michigan are being filed every day. The latest filed this morning by the ACLU and a host of liberal pressure groups takes a new tack, alleging violations of the Safe Drinking Water Act. Suffice it to say, Michigan has no viable legal defense against this suit.

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Conservative News, Cronyism, Democrats, Detroit, Michigan, Michigan Politics, Opinion, Philosophy

Are there any other “past practices” that we should be made aware of?

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If there is any doubt whether or not the children are responsible enough to have been handed the keys to Detroit. This piece alone should put ANY doubt to rest.

I’ve commented numerous times in the past regarding how I (or any rational-thinking person for that matter), would not (/should not) buy into the Kool Aid that Gov. Snyder & Co. have been doling out is massive quantities pertaining to the Detroit Bankruptcy and subsequent Michigan State Government forced takeover (and more importantly Michigan Taxpayer paid) “turnaround” of Detroit.

To even suggest that DECADES of ingrained, multi-generational self-destructive personal behavior was going to instantaneously disappear simply because a spreadsheet was balanced (sort of) is just naiveté taken to the Nth degree.

Unemployment is still a major problem within Detroit.

So is the marked lack of a stable family structure.

And let’s not forget the woefully under-reported, long-anticipated collapse of the Detroit Public School System.

A new detail came out yesterday that should make everyone’s BP shoot up through the roof (and give you yet another reason to oppose giving the children running ANY level of Detroit government any more of our hard-earned money).

{More below}

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